5 Empowering First Steps To Help You Reach Financial Freedom

True story. Want to know what financial freedom feels like? 

Here’s an eye-opening story that happened to an office worker we’ll call Sherri.

One day she noticed a lot of commotion in the office. So she asked a co-worker what was going on. And the co-worker replied frantically that “It’s payday, and we didn’t get paid! “

Sherri was dumbfounded for a moment and repeated, “We didn’t get paid?” She had no idea.

Then, she just paused and looked around at the panic and anger on her co-worker’s faces. And watched as they were calling HR and management to complain that they needed their money ASAP!

That was extremely eye-opening for Sherri because that’s when she realized that all her co-workers were living paycheck to paycheck.

And they couldn’t afford even a minor delay in their money.

Now, of course, Sherri wanted the money that she worked for as well. But, the truth is that her finances were totally unaffected by the delay.

Because her bills were still going to get paid on time. Her family was still going to have food to eat. And she could still buy gas to get to work.

So absolutely nothing in her life was going to change or be disrupted by the situation! 

That’s because thankfully, she started taking steps a while back to develop better money habits. And she already had at least a six-month cash cushion in savings.

So getting paid late didn’t concern her even a little bit.

And that’s what financial freedom feels like!

It’s when:

• Unexpected things happen, and your finances won’t be hurt
• You’re not counting the days, hours, and minutes until payday
• You’re the one in control of your bills — and not the other way around.

The best part is, getting there is easier than you think.

But before I get into how, first, let me share…

The Definition Of Financial Freedom

So what precisely does financial freedom mean? 

Truthfully, the definition may vary from person to person.

However, most people will give an answer that’s more in line with financial independence rather than just financial freedom.

However, as a person that has been living 100% debt-free and financially free for the past few years, I can attest that the two are not mutually exclusive, meaning that:

If you are financially independent, you will have financial freedom. But, you don’t have to be financially independent to experience financial freedom.

So here’s my definition based on my personal experience. 

At the heart of it, the simplest definition of financial freedom is…

“Living a comfortable life while doing the things you enjoy without worrying about how the bills will be paid.”

Now just to clarify, financial freedom doesn’t mean that you have to be rich.

Because by society’s definition, anyone earning over $100K is in the top 10% of income earners and could technically be considered rich.

However, if your expenses are outpacing your income and your bills have you feeling stressed…

Then that certainly is not financial freedom, right?

On the other hand, take someone like Sherri. She earns about $50K. But she pays her expenses comfortably, has a nice savings, is paying down debt, and still has extra money to enjoy life. So essentially, she does have a level of financial freedom. 

So the crucial thing to know is that income is not the determining factor for financial freedom.

Your comfort level with paying your expenses and how confident you feel about your finances is what determines whether or not you have financial freedom.

So as you can see, financial freedom is not exclusively tied to financial independence (FI).

The most significant difference between the two is that once you reach FI, you’ve moved into the realm of work optional. Because your savings and investments are enough to sustain your lifestyle.

So basically, that’s financial freedom on steroids!

Fortunately, here are some first steps you can take to get empowered and start achieving your own financial freedom in no time.

5 First Steps To Financial Freedom

1. Learn The Basics

Some finance experts believe that being smart with money only requires understanding simple math. Meaning, $1 + $1 = $2. And if you only have $2, don’t spend $3.

Well, that may be true for day-to-day spending. However, reaching financial freedom takes an entirely different skill set. 

And it starts with financial literacy. To achieve financial success, it’s absolutely vital to take the time to educate yourself about finances. You can begin by simply reading books and blogs, listening to podcasts, and seeking out financial advice you can trust. 

Because knowing how to create a successful budget, pay down debt, save, invest, and build wealth is not automatic.

So making an effort to increase your knowledge in these areas is the best way to help you to:

• Understand how to manage your cash flow
• Elevate your financial decision-making
• Properly allocate your income so that it works in your favor

And those are some of the crucial building blocks that will allow you to ultimately gain control of your finances and your life.

Related Post: 5 Reasons Why I Still Respect The “B” Word

Related Post: The 3 Best Things I Did To Become Debt-Free

2. Know What You Truly Want

Is your life everything you hoped it would be? If it is, awesome!

But if it’s not…

The primary reason why you might not be living the life you want is because you haven’t figured out yet what you truly value. 

For instance, one of my former co-workers worked her butt off at three jobs. All so that she could buy a house in a particular neighborhood, get a luxury car, and beautifully decorate her home.

She said she’s been wanting all these things for a long time. And, she finally got them.

However, she constantly complains about never having any money. She frequently gets sick. And she’s stressed out all the time by bills.

So even though she has all the things she thought she wanted – she still isn’t happy with her life.

And when she talks about the things she actually values, she uses words like more time for her kids, stable finances, and better health.

Well, here’s the thing…

When the actions you take conflict with what you value, it puts your life into a state of disharmony and stress.

That’s why figuring out what you value and not just what you think you want is a crucial step toward creating a life you can truly enjoy.

A great place to start is by taking a hard look at the things you currently spend money on and determining if they align with values. In other words, are they helping you get closer to your financial freedom goals or pushing you further away?

Related Post: 3 Financial Freedom Myths That Are Totally Wrong

3. Believe In Yourself And What’s Possible

Mindset is everything!

And it is a powerful tool that can literally help you achieve anything you want.

But first, you have to believe in yourself.

And you have to believe that what you want is possible.

That’s why I have developed my own life philosophies. Here’s one of my favorites, and it has two parts. The first part is that:

You have to change your thinking before you can change your actions…

The reason is that the stories in your head about who you are, who you can become, and what you can or can not do, are what will fuel your ambition or keep you stuck.

We’ve all experienced moments of fear, self-doubt, and uncertainty. However, those are just limiting beliefs. So to overcome those obstacles start shifting your thinking: 

• From the negative to the positive
• To your strengths and not your weaknesses
• Toward progress and not perfection

You have the power to replace limiting beliefs with empowering truths. 

Think of those limiting beliefs as bowling pins and your empowering truth as the bowling ball.

So for every limiting belief pin your fear and doubts set up, use that empowering truth ball to knock it down.

Most importantly, never give up.

Because believing that you are smart, capable, and worthy of financial freedom will give you the drive and determination to do what it takes to make your dream a reality.

4. Change Your Actions

Financial guru Dave Ramsey always says that personal finance is 80% behavior and 20% head knowledge.

So, if you are not seeing the results you want in your finances, then it’s time to take a look at your spending habits. 

And that brings me to the second part of the life philosophy I mentioned earlier, which is:

…You have to change your actions if you want different results.

The good news is that you don’t need to make big changes all at once. But they do need to be different from whatever you’ve done in the past.

So ask yourself, “What can I do differently?”

For instance, if you need to find more money in your budget, try changing your eating out behavior. Meaning, instead of eating out five days a week, cut it back to three days a week. 

It makes the change feel less drastic, and you don’t feel like you’re completely missing out. Plus, that alone could save you at least $20 a week, which adds up to a cool $100 a month.

5. Seek Expert Advice

Everybody needs help at some point in life with something, right?

And when your finances are out of whack, sometimes you have to turn to the experts.

Having someone in your corner who has been where you are and who can guide you to success can make the journey so much easier.

Motivational speaker Tony Robbins says that:

 “Proximity is power.” 

Meaning that you should surround yourself with the people you want to be most like. The people who inspire and elevate you. And the people who motivate you to succeed. 

Coaches and mentors do just that. They are invaluable sources of knowledge, support, and encouragement. And constantly challenge you to do better. 

You can find mentors in many places, like joining Facebook groups, your place of worship, networking events, and even social media. 

And as you work toward your goal of financial freedom, studies have shown that getting a financial coach can dramatically increase your results when it comes to:

• Learning better money management skills
• Paying down debt
• Improving credit

Plus, coaches help you have overall better financial confidence, which leads to better financial well-being.

And, of course, if you need help getting empowered with your finances, just click HERE to schedule a free financial breakthrough session.

The Bottom Line

Financial freedom is possible!

And you don’t have to live your life panicking over a late payday. 

Instead, you can have the same financial confidence, calmness, and sense of well-being that Sherri had whenever money hiccups occur.

Because now you know the first steps that can help empower you to achieve your goals.

It’s just a matter of:

1. Learning the basics
2. Knowing what you truly value
3. Believing in yourself and what’s possible
4. Changing your actions
5. Seeking expert advice

The next move is up to you!